The health insurer’s annual report showed a €4million increase in salaries and a €10million increase in administration costs.

It comes at the same time customers are facing a 15% rise in their premiums.

Speaking as the report was laid before the Oireachtas, former junior minister Lucinda Creighton said: “The figures in the VHI annual accounts are stark.

“Despite a falling number of policy holders, in 2012 administrative expenses increased by €10million, numbers of employees by over 100 and salary costs have increased by almost €4million.”

The report detailed how staff salaries surged from €47million to €51.9million while retirement benefit rose by €200,000 to €4.6million. The figures were released as the Dail debated levy hikes to ordinary customers and the company is warning of the need for a bailout.

Fine Gael TD Ms Creighton added: “This comes at a time when the Government are soon to announce that €150million of taxpayers’ money is to be injected into VHI to keep the business solvent.

“There is no credible basis to justify increasing administrative and salary costs in the State’s largest health insurer when policy numbers are depleting and it needs a €150million bailout.”

A VHI spokeswoman denied it was to seek funding from the State and the money would be raised through its own sources.

The company has recorded a profit for the past few years but has still hammered customers repeatedly. Thousands of people are now shedding their insurance as the cost of it becomes too high to maintain.